Biomass Pellet HSN Code & GST Rate in India 2026: Complete Guide for Manufacturers

Biomass pellets in India are classified under HSN code 44013100 (wood pellets) or 44013900 (other agglomerated biomass), both under Chapter 44, with GST rates that depend on feedstock and form. Agricultural straw and husk in unprepared pellet form fall under HSN 1213 at Nil GST. Here is how to classify yours correctly.

That one paragraph answers the question most manufacturers are searching for. But the classification is genuinely messy at the edges — the difference between a Nil-rated product and a 5% product can come down to whether your pellet is treated as "unprepared" agricultural material or a "manufactured fuel." Getting it wrong means wrong invoices, blocked input credit, and disputes at assessment. This guide walks through each category honestly, cites the governing notifications, and shows you how to put it on an invoice.

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Quick-Reference Table

This is the table worth bookmarking. Rates are stated as per current CBIC sources and notifications — always confirm the live rate before filing (see the disclaimer at the end).

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Wood Pellets — HSN 44013100

If your pellets are made from wood-based feedstock — sawdust, wood chips, sawmill waste, or processed wood scrap — they fall under HSN 44013100, within heading 4401 of Chapter 44 (Wood and articles of wood). This is the cleanest classification in the entire category because it maps directly to a specific sub-code.

The GST rate most consistently cited across trade sources and the CBIC rate schedule for heading 4401 is 5%. This applies to the pellet when invoiced as a wood-based fuel product.

For manufacturers, the practical implication is straightforward: if your feedstock is genuinely wood, use 44013100, charge GST at the applicable rate (currently cited at 5%), and you have a defensible classification. The complications begin when the feedstock is not wood.

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Agro-Residue Pellets — HSN 44013900

This is where most Indian manufacturers actually sit, and it is where the confusion is greatest. Pellets made from cotton stalk, mustard residue, sugarcane bagasse, or mixed agricultural waste are classified under HSN 44013900 — the "Other" sub-heading under 4401, covering agglomerated biomass that is not wood pellets.

Here is the honest teaching point. The CBIC rate schedule shows the sub-items under heading 4401 — including wood pellets and "other" agglomerated forms — at 5%. But the same schedule carries a conflicting entry showing the bare 4401 heading at 0%, and different trade sources interpret the "other agglomerated" line differently. This is not a failure of research; it is a genuine ambiguity in how the heading is read, and it is exactly why two manufacturers making similar agro-residue pellets sometimes invoice at different rates.

The safe approach for an agro-residue pellet manufacturer is to treat the product as falling under 4401 at the applicable rate for agglomerated biomass fuel (currently cited at 5%), document the feedstock clearly, and confirm the live position against the latest CBIC notification and your chartered accountant before filing. Do not assume your agro-residue pellet is Nil-rated simply because raw husk is — that is the single most common and most expensive classification error in this category.

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Straw & Husk Pellets — HSN 1213

This category is the one that genuinely carries a Nil (0%) rate, and understanding why is critical.

HSN 1213 covers "cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets." The key word is unprepared. Raw paddy straw or rice husk that has simply been pressed into pellet form — without being processed into a manufactured fuel product — falls under 1213 and is Nil-rated, as confirmed by the CBEC 39 FAQ on GST Rates (29.09.2017).

But here is the distinction manufacturers get wrong. Once that straw or husk is processed into a manufactured fuel pellet — densified, treated, or marketed as a standardised solid fuel for combustion — the classification can shift from 1213 to 4401, and with it the rate can move from Nil to the heading-4401 rate. The line between "unprepared agricultural material in pellet form" and "manufactured biomass fuel pellet" is the line between 0% and 5%, and it is a question of how the product is actually prepared and sold, not just what it is made from.

If you are pelletising raw husk or straw with no further processing and selling it as agricultural material, 1213 may apply. If you are running it through a fuel-pellet production line and selling it as a coal substitute to power plants and boilers, you are almost certainly in 4401 territory. When in doubt, this is precisely the kind of classification to confirm with CBIC guidance and your CA.

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Biomass Briquettes — The 2712.90 vs 4401 Question

Biomass briquettes sit in genuinely contested territory. Some sellers classify them under 2712.90, while others treat them under heading 4401 alongside pellets. This is not a settled, single-answer question.

The authoritative reference here is CBIC Circular 200/12/2023-GST, issued following the 50th GST Council meeting of 11 July 2023, which addressed the classification and rate treatment of certain goods including biomass-related items and provided clarification and past-period regularisation. Any manufacturer or trader dealing in briquettes should read this circular directly and apply its guidance rather than relying on a generic HSN directory page.

The rate historically cited for biomass briquettes is 5%, with the circular clarifying treatment. As with every rate in this article, confirm the current position before invoicing.

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Common Classification Mistakes

Four errors account for most biomass pellet GST disputes.

The first is using the wood pellet code (44013100) for agro-residue pellets. These are different sub-codes — 44013100 is specifically wood, 44013900 is "other." Using the wood code for cotton-stalk or bagasse pellets is a misclassification even if the rate happens to match, and it creates a mismatch between your invoice and your actual product that surfaces at assessment.

The second is assuming all biomass is Nil-rated because husk is. Raw rice husk under 1213 is Nil-rated. That does not make your manufactured agro-residue fuel pellet Nil-rated. This assumption leads manufacturers to under-charge GST, which becomes their liability to pay later, with interest.

The third is not matching the HSN on the invoice to the actual feedstock. If your invoice says 44013100 (wood) but your product is bagasse pellets, the document is internally inconsistent. The HSN must reflect what you actually made.

The fourth is confusing raw straw (1213) with manufactured fuel pellets (4401). As covered above, this is the Nil-versus-5% line, and it turns on preparation and end-use, not feedstock alone.

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How to Put It on a GST Invoice Correctly

Getting the invoice right is mechanical once the classification is settled. Determine your product's correct HSN first — wood-based goes to 44013100, agro-residue to 44013900, genuinely unprepared straw or husk in pellet form to 1213. State the full HSN code on the invoice; for most biomass manufacturers crossing the turnover threshold, the 6- or 8-digit code is required rather than the 4-digit heading. Apply the GST rate that corresponds to that HSN under the current notification, and show CGST and SGST (or IGST for inter-state supply) separately. Keep your feedstock documentation — purchase records showing wood versus agri-residue — because that is what substantiates your classification if it is ever questioned. Finally, reconcile the HSN you charge on sales with the HSN summary in your GSTR-1, since mismatches there are a common trigger for notices.

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Frequently Asked Questions

What is the HSN code for biomass pellets in India?

Biomass pellets fall under HSN 44013100 (wood pellets) or 44013900 (other agglomerated biomass) in Chapter 44. Unprepared cereal straw and husk pressed into pellets fall under HSN 1213.

What is the GST rate on biomass pellets?

The rate most consistently cited for pellets under heading 4401 is 5%, as per current CBIC sources. Unprepared straw and husk under 1213 are Nil-rated. Rates change by notification — confirm the live rate with CBIC and your CA before filing.

Is the HSN code the same for wood pellets and agro-residue pellets?

No. Wood pellets are 44013100 and agro-residue pellets are 44013900. Both sit under heading 4401, but they are distinct sub-codes and your invoice should use the one matching your actual feedstock.

What is the HSN code for rice husk pellets?

Raw, unprepared rice husk in pellet form falls under HSN 1213 at Nil GST. Once processed into a manufactured fuel pellet, classification can shift to 4401. The distinction is preparation and end-use.

Are biomass briquettes and pellets classified differently?

They can be. Pellets generally fall under 4401. Briquettes are contested between 2712.90 and 4401 — see CBIC Circular 200/12/2023-GST for the governing clarification.

Is GST applicable on paddy straw pellets?

Unprepared paddy straw in pellet form falls under HSN 1213 at Nil GST per the CBEC FAQ. If it is processed and sold as a manufactured fuel pellet, it may fall under 4401 at the applicable rate. Confirm your specific case with your CA.

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Need Compliance Help Setting Up?

If you are setting up a biomass pellet manufacturing unit and need help with correct HSN classification, GST registration, and invoicing compliance for your specific feedstock and product, Peltra Energy offers consultation for manufacturers entering the sector.

Visit pelletrates.com/consultation to discuss your project. Consultation covers plant setup, subsidy navigation, and compliance guidance — starting at ₹10,000.

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As of October 2026. GST rates and HSN classifications change by government notification, and the treatment of agro-residue pellets and briquettes in particular is subject to interpretation. This article is for general information only and is not tax advice. Rates are stated as per current CBIC sources, including CBIC Notification 09/2025-Central Tax (Rate) (in force from 22 September 2025), CBIC Circular 200/12/2023-GST (biomass briquettes clarification), and the CBEC 39 FAQ on GST Rates (29.09.2017) for the husk/straw Nil rate. Always verify the current rate and classification for your specific product on the official CBIC website (cbic.gov.in) and with your chartered accountant before issuing invoices or filing returns.